Financial Organization

Money market in India

Instruments

1. Call/Notice/Term money market

2. Repurchase Agreement (Repo & Reverse Repo) market

3. Treasury bill market

4. Commercial Bill market

5. Commercial paper market

6. Certificate of Deposit market

7. Money Market Mutual Fund.

8. Cash Management Bill (CMB).

Call money market

The call money market deals in short term finance repayable on demand, with a maturity period varying from one day to 14 days

The interest rate paid on call money loans, known as the call rate

There are now two call rates in India: the Inter bank call rate and the lending rate of DFHI

The major call money markets are in MumbaiKolkataDelhiChennaiAhmedabad.

Treasury bill market

Treasury bills are instrument of short-term borrowing by the Government of India

it is classified on the maturity period like 91-days TBs, 182-days TBs, 364-days TBs and also 10-days 

The bills are of two kinds- Adhoc and regular. The adhoc bills are issued for investment by the state governments, semi government departments and foreign central banks for temporary investment. They are not sold to banks and general public. The treasury bills sold to the public and banks are called regular treasury bills. 

Money market mutual funds Money market mutual funds invest money in specifically, high-quality and very short maturity-based money market instruments. The RBI has approved the establishment of very few such funds in India

Commercial paper- an unsecured promissory note with a fixed maturity of not more than 364 days.

Certificate of deposit-it is the certificate issued by bank/financial institute to other banks / financial institute , who give funds on short term basis

Capital markets of India

This market is concerned with provision of raising long term funds of maturity 1 year or more

Instruments– ( Main )

Mutual funds of India‎ 

Securities and Exchange Board of India‎ 

Stock exchanges in India

Securities and Exchange Board of India ( SEBI )

established in the year 1988 and given statutory powers on 30 January 1992 through the SEBI Act, 1992

Ajay Tyagi was appointed chairman on 10 January 2017 replacing U K Sinha. And took charge of chairman office on 1 March 2017

SEBI Headquarter, Mumbai

FUNCTION-.to protect the interests of investors in securities and to promote the development of, and to regulate the securities market and for matters connected there with or incidental there to

Mutual funds of India

Mutual Funds in India are being distributed by various channels , like : Corporate Distributors, Individual Distributors , Post Offices and Banks.

The first introduction of a mutual fund in India occurred in 1963

Indian financial companies established their own funds, including State Bank of IndiaCanara Bank and by Punjab National Bank.

Indian stock exchange

the largest of which are the NSE and BSE

Now total 23m ( 2 are national and 21 are regional )

Stock Exchanges are an organized marketplace, either corporation or mutual organization, where members of the organization gather to trade company stocks or other securities. The members may act either as agents for their customers

in 1875, was formally organized as the Bombay Stock Exchange (BSE).

Bombay Stock Exchange

located at Dalal StreetMumbai 

Established in 1875, the BSE (formerly known as Bombay Stock Exchange Ltd.)

Asia’s first stock exchange.

It claims to be the world's fastest stock exchange, with a median trade speed of 6 microseconds.

The BSE is the world's 10th largest stock exchange

founded by Premchand Roychand(businessmen in 19th-century Bombay) .Also known as the Cotton King, the Bullion King or just the Big Bull. also the founder of the Native Share and Stock Brokers Association, now known as the BSE

National Stock Exchange of India

  • Location- Mumbai
  • Founded1992 ,, owner National Stock Exchange of India Limited
  •  (Chairman)ChawlaAshok Key people Mr. 
  • Mr. Vikram Limaye (MD & CEO)
  • Based on the recommendations laid out by the Pherwani committee